Keep some cash in your account so you can exit your trades should they go south on you. There’s nothing worse than watching the market tank and you can’t get out because you don’t have to money to pay for the trade.
Take profits regularly. Watch for key technical indicators and take profits at regular intervals. A bird in the hand is worth two in the bush. You can get back into the trade when necessary but at least you realized the gain. It’s not a profit until you see it in cash.
Don’t get emotional. Your emotions will definitely get the better of you in this business because its money. Everyone is emotional about winning or losing money. You have to conquer that because if you let one loss intimidate you, you may miss an opportunity down the road. Also if you get too cocky you may start to make stupid mistakes.
Don’t chase the market. Let the market come to you. If you see the price of a stock start to rocket up and you wanted to get into that trade. Don’t get into it right away. Wait until the pull back, it will pullback. You can guarantee a pullback just like gravity. Everything that goes up, must come down. Just be glad you now know that this stock has just started an upswing. You can watch the stock come back down to support levels and then get in and watch it go up again. It will do it at least a few times.
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